Case Law[2024] ZAGPPHC 544South Africa
LNG Scientific (Pty) Ltd v Special Investigating Unit and Another (A14/2023) [2024] ZAGPPHC 544 (10 June 2024)
High Court of South Africa (Gauteng Division, Pretoria)
10 June 2024
Headnotes
LNG had an automatic right of appeal to the full court (of the High Court) and therefore dismissed the application by LNG for leave to appeal. The Tribunal relied on Caledon River Properties[3] which is authority for the proposition that LNG had an automatic right of appeal to the Full Court with jurisdiction. Such judgment
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## LNG Scientific (Pty) Ltd v Special Investigating Unit and Another (A14/2023) [2024] ZAGPPHC 544 (10 June 2024)
LNG Scientific (Pty) Ltd v Special Investigating Unit and Another (A14/2023) [2024] ZAGPPHC 544 (10 June 2024)
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sino date 10 June 2024
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
1.
REPORTABLE: YES
2.
OF INTEREST TO OTHER JUDGES: YES
3.
REVISED
CASE NO: A14/2023
CASE NO. COURT
A
QUO
: GP03/2022
In the matters between:-
LNG
SCIENTIFIC (PTY)
LTD
Appellant
(Reg.
No.: 2014/009577/07)
vs
THE
SPECIAL INVESTIGATING UNIT
First
Respondent
MEC:
GAUTENG DEPARTMENT OF HEALTH
Second Respondent
AND
CASE
NO: A68/2023
CASE NO. COURT
A
QUO
: GP03/2022
LNG
SCIENTIFIC (PTY)
LTD
Appellant
(Reg.
No.: 2104/009577/07)
vs
THE
SPECIAL INVESTIGATING UNIT
First
Respondent
MEC:
GAUTENG DEPARTMENT OF HEALTH
Second Respondent
Coram:
Kooverjie J, Cox AJ et Mogotsi AJ
Heard
on:
15 May 2024
Delivered:
10 June
2024 - This
judgment was handed down electronically by circulation to the
parties' representatives by email, by being uploaded to
the
CaseLines
system
of the GD and by release to SAFLII. The date and time for hand-down
is deemed to be 15:00 on 10 June 2024.
ORDER
In respect of Case nr.
A14/2023 it is ordered:-
1.
The application for condonation is granted.
2.
The appeal is dismissed with costs.
3.
The costs include the costs of two counsel. Such costs to be on the
scale of costs in terms of Uniform Rule 69(7). Scale
C for senior,
and scale B for junior.
In respect of case nr.
A68/2023 it is ordered:-
1. The appeal is
dismissed with costs.
3.
The costs include the costs of two counsel.
Such
costs to be on the scale of costs in terms of Uniform Rule 69(7).
Scale C for senior, and scale B for junior.
JUDGMENT
KOOVERJIE
J
(Cox
AJ and Mogotsi AJ concurring)
[1]
The two appeals before the court emanates from the decisions of the
Special Tribunal, in terms
of Section 8(7) of the Special
Investigation Units and Special Tribunals Act 74 of 1996 (“the
Act”). For the purposes
of this judgment the parties will be
referred to as the appellant or “LNG” and the respondents
will also be referred
as the respondents; the “SIU” and
“Department”. The Tribunal Rules will be referred to as
“Tribunal
Rules” and the Uniform Rules of Court “the
Rules”.
[2]
The appeal against the judgment and interlocutory order of the
Tribunal dated 29 June 2022 appears
under case number A14/2023 in
this court (the first appeal), and the appeal against the judgment
and interlocutory order of 3 February
2023 falls under case number
A68/2023 (the second appeal).
[3]
Before considering the first appeal, LNG’s condonation
application for the late noting of
its first appeal should be
disposed of. The respondents oppose the granting of the condonation.
It is common cause that in the
event of condonation being granted,
this court is required to make a finding on the first appeal as well
as the second appeal.
[4]
The well-established principles dictate that this court of appeal to
interfere, one or more of
the following circumstances is/are present:
4.1
the Tribunal had not exercised its discretion judicially;
4.2
the Tribunal was influenced by wrong principles in law or misdirected
itself on the facts; or
4.3
the Tribunal reached a decision which could not reasonably have been
made by a Tribunal properly directing itself to all
the relevant
facts and principles.
[1]
THE
PROCEEDINGS BEFORE THE SPECIAL TRIBUNAL
[5]
The main case before the Tribunal constitutes a judicial review of an
alleged impugned decision
taken in April 2022 by the Department. In
this instance the SIU and the Department jointly sought judicial
review of the Department’s
decision. The decision taken by the
CFO (Chief Financial Officer) at the time, Ms Lehloenya, concerned
the acquisition of Covid-19
personal protective equipment (PPE) from
LNG. The respondents sought consequential relief in terms of Section
172(1)(b) of the
Constitution which included an order directing LNG
to disgorge its profits from the procurement. The relief claimed in
the main
case were,
inter alia
:
5.1
a judicial review of the decision of the CFO;
5.2
a declaration of invalidity in relation to the contract entered into
between the parties; and
5.3
orders for payment from LNG.
[6]
When LNG received an invitation from the Tribunal to attend a
judicial case management meeting,
it requested the record of the
impugned decision in terms of Rule 53(1)(b) of the Uniform Rules of
Court. The respondents opposed
such request. The appellant was
advised that it would be only entitled to documents in terms of Rule
35 of the Uniform Rules of
Court. This caused LNG to institute its
interlocutory application persisting with the request of the record.
The Tribunal considered
the matter and delivered its judgment on 29
June 2022 (the June 2022 order). LNG was not satisfied with the order
and judgment
and thereafter applied for leave to appeal. The Tribunal
was of the view that it was appropriate to discover the record by
virtue
of Tribunal Rule 17(4) read with Uniform Rule 35.
[7]
Thereafter on 15 November 2022, LNG instituted an application for
condonation for the late delivery
of its notice of appeal in the
first appeal and henceforth applied for a hearing date.
[8]
Subsequent to the judgment of June 2022 the SIU, on 2 November 2022,
and the Department on 10
November 2022, discovered the record. Amidst
these two discovery processes, on 3 November 2022
[2]
LNG delivered the notice of appeal to this full court against the
Tribunal’s judgment and orders of June 2022.
[9]
In LNG’s application for leave to appeal, the Tribunal, upon
the ventilation of the issues,
held that LNG had an automatic right
of appeal to the full court (of the High Court) and therefore
dismissed the application by
LNG for leave to appeal. The Tribunal
relied on
Caledon
River Properties
[3]
which
is authority for the proposition that LNG had an automatic right of
appeal to the Full Court with jurisdiction. Such judgment
order was
issued on 7 September 2022.
[10]
The appellant opposed the continuation of the main matter before the
Tribunal. Its main contention was that
the appeal, pending the
Tribunal, could not proceed. The Tribunal however found that in the
circumstances, the noting of the appeal
did not suspend the June 2022
order of the Tribunal. The following processes nevertheless
continued:
10.1
During the case management meeting on 10 November 2022, the Tribunal
directed that the parties deliver heads
of argument pertaining to
various issues raised by the respondents, namely whether LNG’s
right to appeal lapsed, the issue
of condonation, and whether the
noting of the appeal suspended the operation and execution of the
Tribunal’s judgment and
order of June 2022. The outcome of the
said issues would determine whether or not the main matter could be
adjudicated.
10.2
On 3 February 2023 the Tribunal found that there was no impediment in
proceeding with the main matter and
consequently directed that
parties file their respective papers as well as the heads of
argument. Notably LNG has, to date, not
filed its answering papers.
10.3
LNG has appealed this judgment of 3 February 2023 (February 2023
judgment), the second appeal, under case
nr. A68/2023.
10.4
The respondents nevertheless proceeded to enroll the main case for
default judgment which was set down for
15 June 2023. LNG again
opposed this application and thereafter filed an irregular step
notice. The Tribunal, on 7 February 2024,
now for the third time
delivered its judgment dismissing LNG’s irregular step
application. It continued with the hearing
of the main case and
granted the relief sought by the respondents.
[11]
There has been no notice of appeal filed against the Special
Tribunal’s judgment of 7 February 2024.
This court is thus only
seized with the appeals relating to the June 2022 and the February
2023 orders and judgments.
CONDONATION
[12]
The first issue for determination is whether the appellant is
entitled to condonation of the late filing
of the first appeal. Same
was filed on 3 November 2022 followed by its condonation application
on 15 November 2022. When the appellant
initially filed its
application for leave to appeal before the Tribunal, the Tribunal
ruled that it did not have jurisdiction since
the appellant had an
automatic right to appeal to this full court. As referred to above,
the order was handed down on 7 September
2022 and the Tribunal
dismissed LNG’s application for leave to appeal.
[13]
On the respondents’ version, the notice of appeal was 21 days
late. The respondents opposed the condonation
application on
essentially the following grounds, namely that:
13.1
the delay was unreasonable;
13.2
the reason for the delay was insufficient;
13.3
the appeal has poor prospects of success;
13.4
there is no practical effect or result if the application for leave
to appeal is granted;
13.5
the appeal is an abuse of the process of the court and delays the
finalisation of the main case in the Special
Tribunal.
[14]
In summary the respondents contended that the reasons for the delay
were inadequate. Furthermore the explanation-
that the appellant was
unable to pay its debts was insufficient. A full explanation was
required as to how, between the period,
7 September to 3 November
2022, the appellant was unable to note its appeal. A proper
explanation was also required as to the manner
in which its financial
situation contributed to the lateness.
[15]
It was also argued that there is no merit in the substantive matter
pertaining to the request for the record
in terms of Rule 53(1)(b) of
the Rules of Court. Moreover it would have no practical effect to
order that the Rule 53 record be
made available as the Tribunal had
directed that such record be provided. Eventually the full record was
furnished to the applicants
as per the Tribunal’s order and
directive- namely that the record of the impugned decision must be
filed in terms of Tribunal
Rule 17(4) read with Uniform Rule 35. The
Tribunal specifically expressed that the record, containing the
documents relevant to
the impugned decision, be furnished to the
appellant. It further made provision that the appellant file its
answering papers only
after receipt of the record.
[16]
On this basis, the respondents persisted with their contention that
the appeal was an abuse of process. The
record was furnished since
November 2022 by both the SIU and the Department. It was emphasized
that the appellant received the
full record.
[17]
The respondent held the view that the lateness of appeal be
considered in terms of Rule 49(2) of the Uniform
Rules of Court, more
so as the Uniform Rules of Court finds application in this court.
[4]
Rule 49(2) reads:
“
If
leave to appeal to the full court is granted the notice of appeal
shall be delivered to all the parties within 20 days after
the date
on which leave was granted or being such longer period as may upon
good cause shown be permitted.”
[18]
In terms of Rule 49(6)(b) the court, upon good cause shown, may
reinstate the appeal which has lapsed. It
is not in dispute that the
appeal had lapsed. On the version of the respondent it was pointed
out that the appellant was 21 days
late and on the version of the
appellant, 19 days late, in noting the appeal.
[19]
The reasons for the lateness included the fact that it had
experienced significant cash flow constraints
and was thus unable to
pay its legal fees. Furthermore the SIU’s investigation into
its procurement contract with the Department
duly affected its
business operations. It explained that as late as November 2022 it
was still unable to pay its debts. Under these
circumstances, it was
argued that 19 days was not excessive and condonation should be
granted.
[20]
The appellant submitted that it has prospects of success on appeal on
the basis that the Tribunal erred in
fact and in law by finding that
the record need not be furnished in terms of Rule 53(1)(b).
[21]
For condonation to be granted, the appellant must satisfy this court
that there is sufficient cause for excusing
it from non-compliance.
Ultimately this court, in exercising its judicial discretion, should
have regard to all of the factors
presented.
[5]
The factors would include but are not limited to the following: the
degree of non-compliance with the rules; the explanation therefore,
the prospects of success on appeal; and the importance of the case.
[22]
In
Van
Wyk vs Unitas Hospital
[6]
the court held that the ultimate test in considering an application
for condonation is to have regard to the interests of justice
factor.
Whether it is in the interests of justice would depend on the facts
of the matter. Although the proposition, that a full
explanation for
the delay must be furnished by a party seeking the indulgence was
cited with approval by the said court, it cannot
be gainsaid that
ultimately a consideration of the full conspectus of the facts must
be taken into account.
[23]
It is common cause that the prime dispute in the matter turns on an
introspection of a crucial procedural
aspect pertaining to review
procedures and the current procedures adopted at the Tribunal. It is
not in dispute that there is a
lacuna in the Tribunal Rules since
there is no provision made specifically for review processes. This
inevitably entails that litigants
are not entitled to the record as
envisaged in Rule 53(1)(b). It has been argued that this is a
significant inroad to a litigant’s
constitutional right to a
fair hearing.
[24]
Insofar as the issue of prejudice is concerned, I am required to
weigh the circumstances of both parties.
It is evident that the
appellants would be prejudiced if condonation is not granted. A final
word on its right to the record has
to be pronounced. The Tribunal
landscape illustrates that its prescriptive rules are not aligned to
fair process.
[25]
I am further mindful that the issue as to whether or not there are
reasonable prospects of success on the
merits, is a factor that
should be considered. However it cannot be evaluated in isolation. It
is not by itself be a determining
factor.
[7]
Having considered the facts, I find that the delay was not inordinate
and further on the conspectus of all the facts placed before
me, I am
inclined to grant condonation for the late filing of the first
appeal.
THE
FIRST APPEAL
[26]
The appellant persisted with the view that it is entitled to the Rule
53 record as envisaged in terms of
Rule 53(1)(b) of the Uniform Rules
of Court.
[8]
[27]
The Tribunal, in its judgment, dealt with two issues for
determination, namely whether the respondents were
obliged to deliver
a record of the decision in terms of Rule 53(1)(b); secondly, whether
the respondents tender to discover the
relevant documents (record)
would allow LNG to properly oppose the review application.
Tribunal’s
reasoning
[28]
The Tribunal unequivocally expressed that its proceedings are
regulated in terms of the Tribunal Rules and
not the Uniform Rules of
Court. It acknowledged that by virtue of Tribunal Rule 28, the
Tribunal had a judicial discretion to invoke
the Uniform Rules of
Court in instances where the Tribunal Rules do not make provision for
certain processes.
[29]
The review application in this instance was instituted in terms of
Tribunal Rule 10 which regulates ordinary
applications (Tribunal Rule
10 is similar to Uniform Rule 6). The Tribunal expressed that a
reviewing party has the choice to institute
its review in the manner
that befits it, as in this case. The review proceedings, herein, were
instituted in terms of Tribunal
Rule 10.
[30]
The Tribunal, in its judgment, acknowleged that there is no
equivalent review procedure as that envisaged
in Rule 53, in the
Tribunal Rules. It further reasoned that the remedy in terms of Rule
53(1)(b) could not be available to LNG
since Rule 53 envisages
circumstances where a party that seeks to review an administrative
decision by an organ of state, and in
instances where organs of state
are cited as the respondents.
[31]
It further premised its findings on the following facts namely that:
the circumstances herein are different.
Here the organ of state is
the party reviewing its own decision thereby a self-review
application; the Rule 53 mechanism could
not find application as the
respondents are in possession of the record and are able to make out
their case in their founding affidavit;
state organs are therefore
not obliged to follow the Rule 53 process in these instances (as the
expression used: they are not shackled
to the Rule 53 process); and
finally the Tribunal hence expressed that the identification of the
party which institute reviews
is a main factor when determining what
the appropriate review procedure would be.
Legislative
prescripts governing review at the Special Tribunal
[32]
It is necessary to make reference to the legislative backdrop against
which reviews are administered in the
Tribunal setting. This would
enable the court to appreciate how reviews have thus far been dealt
with at the Tribunal. Review proceedings
are instituted within the
legal prescripts of the Act and the Tribunal Rules. In this instance,
the review was instituted in terms
of Section 4(1)(c) together with
Section 5(5) of the Act – which stipulates that the SIU may
institute and conduct civil
proceedings in its own name and on behalf
of the state institution before the Special Tribunal or any court of
law.
[33]
The applicable provisions upon which the review was instituted are:
33.1
in terms of Tribunal Rule 10 which is similar to Uniform Rule 6
(motion proceedings);
33.2
Tribunal Rule 10 can be distinguished from Tribunal Rule 13 which
governs action proceedings.
33.3
Coupled with Rule 13 is Tribunal Rule 17 which makes provision for
discovery. The request for discovery is
not automatic and the leave
of the Tribunal is required if particular documents are not
discovered.
33.4
Tribunal Rule 17(2) stipulates that where parties cannot reach an
agreement on discovery, either party may
apply to the Tribunal for an
appropriate order, including an order as to costs.
33.5
Tribunal Rule 17(4) specifically states that the provisions of Rule
35 of the High Court Rules, relating
to discovery, applies to
proceedings instituted before the Tribunal. It stipulates:
“
Subject
to Rule 19, the provisions of Rule 35 of the High Court Rules,
relating to discovery may apply mutatis mutandis to proceedings
brought in terms of these rules.”
33.6
Tribunal Rule 19(6)(b)(ii) makes provision for judicial case
management and stipulates that in the case of
an action, discovery
follows. Rule 19 further stipulates that the matters be dealt with in
an expeditious and cost-effective manner.
The rationale for convening
case management meetings is to iron out all general issues, including
discovery before the hearing
of the main application.
33.7
Tribunal Rule 28 affirms the Tribunal’s discretionary power in
that it makes provision for the Tribunal
to adopt any procedure it
deems appropriate, including invoking High Court Rules, in instances
where the Tribunal Rules do not
provide for such a process. Rule
28(1) reads:
“
(1)
If a situation for which these rules do not provide, arises in
proceedings or contemplated proceedings,
the Tribunal may adopt any
procedure that it deems appropriate in the circumstances, including
the invocation of the High Court
Rules.”
33.8
With reference to the Act, Section 8 stipulates the powers and
functions of the Special Tribunal. Of relevance
is Section 8(1) which
states that:
“
A
Special Tribunal will be independent, and impartial, and perform its
functions without fear, favour or prejudice and subject only
to the
Constitution and the law.”
Section
8(2) gives a Tribunal the power to adjudicate on any civil
proceedings brought before it by the SIU in its own name or on
behalf
of a state institution or any interested parties as defined by the
regulations emanating from the investigation by the SIU;
33.9
Rule 28(2) again emphasizes that the Tribunal take steps in order to
ensure that there is an expeditious
and cost saving manner in which
matters are dealt with. Rule 28(2) reads:
“
(2)
A Tribunal may, in the exercise of its powers and in the performance
of its functions, … take
any steps in relation to the hearing
of a matter before it which may lead to the expeditious and cost
saving disposal of the matter
…”
33.10
Notably, Tribunal Rule 28(2), Rule 19 and Section 9(3) emphasizes
that the processes must take place in an expeditious
and cost
effective manner. Section 9 encompasses the procedure and evidence.
Section 9(3) stipulates:
“
A
Special Tribunal may, in consultation of the parties appearing before
it, take any steps in relation to the hearing of their matter
before
it which may lead to the expeditious and cost saving disposal of the
matter, including the abandonment of the application
of any rule of
evidence.”
33.11
Of significance is Section 9(1)
[9]
which specifically gives the Tribunal President the power to make
rules and regulate the conduct of proceedings in the Special
Tribunal, including the process by which proceedings are brought
before the Special Tribunal and the form and content of that process.
Hence the Tribunal President may amend or repeal any rule made by him
or her.
ANALYSIS
[34]
The aforesaid provisions undisputedly demonstrate and, as expressed
in the Tribunal’s judgment, that
there is a lacuna in the
Tribunal Rules pertaining to record accessibility in review
proceedings. Tribunal Rule 10 (like Uniform
Rule 6), does not
specifically address how a record could be accessible in review
proceedings. Although the furnishing of a record
is not always
peremptory, it cannot be gainsaid that the filing of the record is an
inherent procedure in review processes.
[35]
It became evident that discovery through the Rule 35 process is a
misfit. The Tribunal, despite ordering
discovery in terms of Tribunal
Rule 19 read with Uniform Rule 35 procedure, appreciated the
shortcoming in the discovery process.
It accepted that by virtue of
the discovery process parties are furnished with limited documents.
It also accepted that the process
only allows for discovery in
exceptional circumstances and only after the close of pleadings.
[36]
Consequently in acknowledging this shortcoming, it made provision for
access to the record in a manner that
would not infringe the
appellants’ right to a fair hearing and in fact ordered that
discovery of the record should be made
prior to the close of
proceedings so that the appellant would have a reasonable opportunity
to prepare its answering papers. At
paragraph 28 the Tribunal stated:
“
The
concern LNG raises, with reference to the limitations of the
discovery procedure dealt with in paragraph [6] of the Helen Suzman
Foundation (HSF) judgment can be addressed by specifying that what
the respondents are required to discover
is
a record of all the information relevant to the impugned decision and
nothing more. As explained in HSF, this is all the information
that
throws light on the decision-making process and the factors that were
likely to be at play in the mind of the decision-maker
.
[10]
Such an order will circumvent the concerns I raised in paragraph [27]
above.”
[37]
The order consequently granted in prayer 3 was:
“
3.
Within 20 days of the date of this order the respondent shall
discover the record of the impugned
decision in terms of Rule 17(4)
read with the Uniform Rules 35(13)(1) and (2).
4.
The record to be filed in paragraph 3 of this order shall exclude
documents attached to the
respondent’s founding affidavit in
the review application instituted under the above case number. The
excluded documents
shall only be reflected in the index for the
record of the impugned decision, reflecting the reference of each
document in the
founding affidavit.”
[38]
On a fair interpretation of the order, it cannot be gainsaid that
such order should be understood as per
the principles enunciated in
the
HSF
matter
[11]
. By making
reference in paragraph 28 to
HSF
,
the Tribunal accordingly crafted its order in a manner that ensured
that the appellant be furnished with all documents and information
relevant
to the impugned decision. It emphasized that it should be
all
the information
that throw light on the decision-making process and the factors that
were likely to play in the mind of the decision-maker at the
time.
[39]
Notably at paragraph [23] the Tribunal highlighted that the record
forms the basis upon which the court is
equipped to perform its
constitutionally entrenched review function with the result that the
right a litigant enjoys in terms of
Section 34 of the Constitution,
to have a justiciable dispute decided in a fair public hearing,
before a court with all the issues
being ventilated. It accepted that
the record fosters the equality of arms and allows parties to review
proceedings to each have
a reasonable opportunity of presenting their
case under conditions that do not place them under substantial
disadvantage in relation
to their opponent.
[40]
I reiterate that despite remedying the situation in this matter,
there is a void Tribunal processes pertaining
to review proceedings
persist. The question that begs an answer is: why had the Tribunal
not invoked Rule 53(1)(b)? It had the
discretion to do so by virtue
of Tribunal Rule 28. Surely by invoking Rule 53(1)(b) all the parties
would be placed on equal footing.
[41]
Ultimately the function of a court, in review proceedings, is to
determine if a decision that is reviewed
is lawful or not. Judicial
review is thus a fundamental mechanism of keeping public authorities
within due bounds and upholding
the rule of law. The court on review
is concerned only with the question of whether the act or order under
attack should be allowed
to stand or not.
[12]
[42]
It is therefore imperative that the court be placed in a position
where it is able to impartially determine,
on the documents and
information that was before the decision-maker, prior to the review,
if the made decision was lawful or not.
[43]
In the seminal judgment of
HSF
, the Constitutional
Court eloquently summarized the rationale and purpose of the record.
At paragraph 13-16 the court succinctly
stated:
“
[13]
… the requirements in Rule 53(1)(b) that the decision-maker
file a record of decision is primarily intended
to operate in favour
of an applicant in review proceedings. It helps to ensure that review
proceedings are not launched in the
dark.
The
record enables the applicant and the court fully and properly to
assess the lawfulness of the decision-making process
.
It allows an applicant to interrogate the decision and, if necessary,
to amend its notice of motion and
supplement
its grounds for review.
[14]
Our courts have recognised that
Rule 53 plays a vital role in
enabling a court to perform its constitutionally entrenched review
function
:
Without
the record a court cannot perform its constitutionally entrenched
review function with the result that a litigant’s
right in
terms of Section 34 of the Constitution to have a justiciable dispute
decided in a fair public hearing before a court
with all the issues
being ventilated, would be infringed.
[15]
The filing of the full record furthers an applicant’s right of
access to court by ensuring both
that the court has the relevant
information before it and there is equality of arms between the
person challenging a decision and
the decision-maker
. Equality of
arm requires that parties to the review proceedings must each have a
reasonable opportunity of presenting their case
under conditions that
do not place them at a substantial disadvantage vis-à-vis the
opponents. This requires that:
All
the parties have identical copies of the relevant documents on which
to draft their affidavits and they and the court have identical
papers before them when the matter comes to court.
In
Turnball Jackson the court held undeniably
a
Rule 53 record is an invaluable tool in the review process
.
It may help shed light on what happened and why; give the light to
unfounded ex pose facto (after the fact) justification of the
decision under review; in the substantiation of the as yet not fully
substantiated grounds of review; in giving support to the
decision-maker’s stance; and the performance of the reviewing
court’s function.”
[13]
[44]
Evidently, in this instance, the Tribunal should have appreciated the
significance of the Rule 53(1)(b) disclosure
and the limitations that
the discovery process in terms of Rule 35 presents itself with. At
15B-C in
HSF
the court drew the distinction:
“
It
is helpful to point out that the Rule 53 process differs from normal
discovery under Rule 35 of the Uniform Rules of Court. Under
Rule 35
documents are discoverable if relevant and relevance is determined
with reference to the pleadings.
So
under the Rule 35 discovery process, asking for information not
relevant to the pleaded case would be a fishing expedition. Rule
35
reviews are different. The rule envisages the grounds of review
changing later. So relevance is assessed as it relates to the
decision sought to be reviewed, not the case pleaded in the founding
affidavit.
The
object of review proceedings in terms of Rule 53 is to enable an
aggrieved party to quick relief where his rights or interests
are
prejudiced by wrongful administrative action and the furnishing of
the record of the proceedings is an important element in
the review
proceedings.”
[14]
[45]
The basis for instituting a Rule 35 discovery has different outcomes
and discovery is only required to be
made, providing that exceptional
circumstances exist. Furthermore, under Rule 35 discovery, one is not
entitled to all of the documents,
but to the documents that are only
relevant to the pleaded case. Rule 53 reviews, on the other hand, has
a completely different
objective. The record is important as it
provides the information and the nature of the documents that were
before the decision-maker
when it considered the matter.
[46]
Previously in
STT
Sales
[15]
,
the court highlighted the different features of the two processes:
“
[16]
The essential feature of discovery is that a person requiring
discovery is in general only entitled to discovery
once the battle
lines are drawn and the legal issues established. It is not a tool
designed to put the party in a position to draw
the battle lines and
establish the legal issues. Rather it is a tool used to identify
factual issues once legal issues are established.
[17]
It seems to me that if the provisions of the Rule were to apply to
application proceedings, that the Rule
would in general permit a
demand for discovery only once legal issues have been identified. In
application proceedings the legal
issues are only identified once all
the affidavits have been filed... To allow discovery in application
proceedings at that point
would in general be to invite chaos. The
parties are likely to file further affidavits, embrace new issues and
will lead to respond
to each other. The formula by which evidence is
produced in motion proceedings will surely mutate. This is
undesirable.”
[47]
In light of the said salient principles pronounced by our courts, the
matter of
Chauke
[16]
,
that ruled that the discovery procedure is the only appropriate
mechanism to access the record, is unassailable.
HSF
has
finally cleared these misconceptions. In
HSF
at
paragraph [26] the court expressed:
“
The
Rule 53 process differs from the normal discovery under Rule 35 of
the Uniform Rules of Court because the relevance of the Rule
53
record is assessed as it relates to the decision sought to be
reviewed and not the case pleaded in the founding affidavit.”
[48]
The aforesaid proposition once again recently cited with approval by
the Constitutional Court in
Mamadi.
[17]
It reiterated that a Rule 53 record contains all information relevant
to the impugned decision that was before the decision-maker
at the
time of the deliberation.
[49]
The primary purpose of Rule 53 is to facilitate and regulate
applications for review.
[18]
In effect, Rule 53 was adapted from Rule 6. The ordinary procedure
under Rule 6 was adapted to make provision for reviews and for
the
party, officially in possession of the record, to make same
available.
[19]
[50]
It is common cause that the decision, that is being reviewed in the
main application constitutes an “administrative
action”.
The procedure- that an opposing party is entitled to the documents by
way of discovery, in Tribunal proceedings,
falls short of recognizing
the constitutional ordained right a litigant has for a fair hearing.
[51]
It was evident that prior to the first judgment, the respondents were
not playing open cards with the appellant.
The appellant identified
numerous relevant documents that were in the respondents’
possession which were not disclosed. Such
documents were identified
from an affidavit of the then CFO in other court proceedings where
she explained the events pertaining
to the procuring and sourcing of
the various equipment, including the PPE equipment by the Department.
The appellant learnt that
a Bid Adjudication Committee was set up; a
Covid-19 Command Council was part of the decision-making process;
there were internal
discussions about sourcing, procuring and the
replenishing of the stock at the warehouses, instructions were
received from the
Gauteng Department of Treasury relating to
procuring PPE’s; there were specific supply and finance
delegations; various reports
were presented to the Covid-19 Command
Council; there were minutes of meetings of the Departmental
Procurement sub-committee; there
were discussions held regarding the
shortages of Covid-19 supplies; and in particular certain deviations
were approved. It was
emphasized that since there were multi-faceted
consultative decision-making processes, it was necessary to have
access to the relevant
information and documents relating to the
decisions, which included the authorization concerning the deviation.
[52]
Subsequent to the ruling in
HSF
,
more recently the Supreme Court, in
Murray
and Others vs Ntubela and Others
[20]
stated:
“
Rule
53 of the Uniform Rules finds that application of review proceedings
is instituted before a competent court. The Rule was designed
to
serve a dual purpose of informing both the applicant for the review
and the court of what actually happened in the process of
making the
impugned decision …
Most
often than not, those on whom decisions had an adverse effect had no
knowledge of what transpired in the process and were placed
at a
disadvantage when they sought to challenge the decision in question.
Rule 53 becomes a useful term in terms of which access
of information
could be achieved
.”
The
court went on to say at paragraph [44]:
“
To
sum up the substantive point made in this judgment is that once the
jurisdiction of the court before which review proceedings
are pending
is beyond question, the reach of Rule 53 of the Uniform Rule, becomes
unavoidable.”
[53]
There can be no doubt that a respondent is entitled to the record in
self-review applications. A refusal
of the record impinges on the
procedural rights of the respondent.
[21]
The fact that a state organ initiates a legality review of its own
decision, cannot limit a respondent’s right to a record.
It is
of no comfort to be advised that the Rule 35 discovery is the
applicable procedure for access to documents in self-review
applications.
[54]
The reasoning of the Supreme Court of Appeal in the
Minister
of Home Affairs
matter
[22]
supports the said
proposition. The court therein stated:
“
It
does not matter in this case that the application for the review is
based on a principle of legality rather than on the PAJA.
No
procedural differences arise and the grounds of review that apply in
respect of both pathways to review derive ultimately from
the same
source, the common law – although, in the PAJA, those grounds
have been codified.”
Mamadi
upheld
the reasoning set out in the
Home
Affiars
[23]
when it expressed that the prevailing approach is that litigants are
entitled to access all documents and reasons relevant to the
impugned
administrative action.
[55]
The Supreme Court of Appeal in the
DA
matter
[24]
understood the constitutional implications pertaining to the
accessibility of the record and stated at paragraph 36:
“
[36]
In the constitutional era events are clearly empowered beyond the
confines of PAJA to scrutinize the exercise of
public power for
compliance with constitutional prescripts … It can hardly be
argued that, in an ‘era of greater transparency’,
accountability and access to information, a record of decision
relates to the exercise of public power that can be reviewed should
not be made available, whether in terms of Rule 53 or by courts
exercising their inherent power to regulate their own process.”
[56]
For the purposes of this judgment, I find it appropriate to summarize
the salient principles echoed by our
courts regarding the importance
of the record in review proceedings, namely:
56.1
a court cannot perform its constitutionally entrenched review
function without a full record. The record
is there specifically for
the court as it is able to independently appreciate how the impugned
decision was arrived at;
56.2
a litigant’s right in terms of Section 34 of the Constitution
would be infringed as such litigant is
entitled to a fair public
hearing with all the relevant documents and information;
56.3
the parties on both sides must have a reasonable opportunity of
presenting their matters as they have a common
set of documents
before them in order to do so;
56.4
the term “record of proceedings” should be construed to
pertain all relevant documents, evidence
and information which was
before a decision-maker at the
time the decision was taken. Hence
it should contain all information
relevant to the impugned decision or proceedings. The information is
relevant if it throws light
on the decision-making process and
factors that were likely at play in the mind of the decision-maker;
56.5
access to the record is inherent in self-reviews/legality reviews. It
makes no difference if an application
for the review is based on
legality or PAJA. The prevailing position dictates the availability
of the record;
56.6
the Rule 35 discovery procedure is an inadequate procedure to gain
access to the record in review proceedings;
56.7
those on whom the decisions that adversely affects a party is
entitled to the record;
56.8
the function of the court in review proceedings is to determine
whether a decision is lawful or not.
[57]
At present it is evident that the Tribunal Rules are inadequate
insofar as reviews are concerned. A record,
if it exists, is an
inherent requirement in review proceedings. The Tribunal Rules should
make provision for equal access to the
record in its proceedings, in
order to ensure that litigants are guaranteed fair hearings.
Consequently this court invites the
Tribunal Chair, by virtue of the
powers bestowed on him/her in terms of the Act, to attend to the
shortcomings expressed in this
judgment. If the Tribunal Rules are
aligned to parties having a fair hearing, similar disputes can be
curtailed in the future.
The view of this Court would affect the
manner in which review processes are conducted in the future.
Appeal
has no practical effect
[58]
It is not in dispute that the appellant was furnished with the record
during November 2022 on two occasions.
The record was furnished upon
directions of the June 2022 order. During argument it was pointed out
that the appellant was placed
in possession of all relevant
information that was before the Department at the time it made its
decision (thus constituting the
record).
[59]
It is settled law that the appellant is only entitled to information
that was before the Department at the
time the decision was made and
to that part of the record relevant to the decision to be
reviewed.
[25]
[60]
The appellant’s counsel further informed this court that the
documents it requested, after having sight
of the affidavit of the
CFO in other proceedings, was subsequently furnished. The appellant
had not specified any further documents
that have not been furnished.
[61]
The proper test to apply is, whether the judgment or order would have
a practical effect or result, not whether
it might be of importance
in a hypothetical future case.
[26]
Section 16(2)(a)(i) of the Superior Courts Act stipulates:
“
When
at the hearing of an appeal the issues are of such a nature that the
decision sought will have no practical effect or result,
the appeal
may be dismissed on this ground alone.”
As
the record had already been furnished to the appellant, a judgment
directing same would have no practical effect. The appeal
therefore
would thus have no practical effect. Accordingly the first appeal is
dismissed.
Costs
[62]
Insofar as costs are concerned, there is no reason why the appellant
should not be mulcted with costs in
respect of this first appeal. As
a general rule litigants and their legal representatives have an
obligation to appreciate when
the outcome of the appeal would have no
practical effect. They should appreciate that judicial resources
should be used efficiently.
There should always be a proper
consideration before pursuing a matter. The scarcity of judicial
resources requires that such resources
should be utilized
appropriately and efficiently.”
[27]
THE
SECOND APPEAL
[63]
The appellant further noted an appeal against the judgment and order
(including the directives issued) of
the Tribunal dated 3 February
2023.
[64]
It appears that the appellant’s main contention is that the
Tribunal pre-judged the matter which was
not before it for
determination. My understanding of the appellant’s argument is
that the Tribunal could not have proceeded
with the matter until this
appeal court adjudicates and makes a finding in respect of the June
2022 order of the Tribunal.
[65]
This brings us directly to the question as to whether the June 2022
order and judgment was suspended or not?
The respondents argued that
in terms of Section 18(2) of the Superior Courts Act, the
interlocutory order did not have a final
effect and consequently the
order was not suspended.
[66]
In analyzing what the true position in law is in making a finding,
the first issue for determination is whether
the order was
interlocutory and if so, whether it was appealable? The court in
United
Democratic Movement
[28]
aptly set out the test as to when interim orders are appealable. It
stated:
“
[41]
In deciding whether an order is appealable, not only the form of the
order must be considered but also, and predominantly,
its effect.
Thus, an order which appears in form to be purely interlocutory will
be appealable if its effect is such that it is
final and definitive
of any issue or portion thereof in the main action. By the same
token, an order which might appear, according
to its form, to be
finally definitive in the above sense may, nevertheless, be purely
interlocutory in effect. Whether an order
is purely interlocutory in
effect depends on the relevant circumstances and factors of a
particular case. In
Zweni
,
it was held that for an interdictory order or relief to be appealable
it must: (a) be final in effect and not susceptible to alteration
by
the court of first instance; (b) be definitive of the rights of the
parties, in other words, it must grant definite and distinct
relief;
and (c) have the effect of disposing of at least a substantial
portion of the relief claimed in the main proceedings.
[42]
An interim order may be appealable even if it does not possess all
three attributes
but has final effect or is such as to dispose of
any issue or portion of the issue in the main action or suit
, or
if the order irreparably anticipates or precludes some of the relief
which would or might be given at the hearing, or if the
appeal would
lead to a just and reasonable prompt resolution of the real issues
between the parties. In Von Abo, this Court said:
“
It
is fair to say there is no checklist of requirements. Several
considerations need to be weighed up, including whether the relief
granted was final in its effect, definitive of the right of the
parties, disposed of a substantial portion of the relief claimed,
aspects of convenience, the time at which the issue is considered,
delay, expedience, prejudice, the avoidance of piecemeal appeals
and
the attainment of justice.”
[43]
Whether an interim order has final effect or disposes of a
substantial portion of the relief sought in a
pending review is
merely one consideration. Under the common law principle as laid down
in
Zweni
, if none of the requirements set out therein were
met, it was the end of the matter.
But now the test of
appealability is the interests of justice
, and no longer the
common law test as set out in
Zweni
.
[45]
What is to be considered and is decisive in deciding whether a
judgment is appealable, even if the
Zweni
requirements are not fully met, is
the
interests of justice of a particular case and whether or not an order
lacking one or more of the factors set out in
Zweni
constitutes a “decision” for the purposes of section
16(1)(a) of the Superior Courts Act
.
Over and above the common law test, it is well established that an
interim
order may be appealed against if the interest of justice so dictate.
It is thus in the
interests
of justice that the impugned interim interdict is appealable on the
allegation that the interdictory relief in question
resulted in the
infringement of the right to freedom of expression
.
[29]
[67]
Thus in applying the
Zweni
test, I am of the view that
the decision of the Tribunal had a final effect and definitive of the
rights of the appellant. The
argument that the order and judgment
could be revisited by the Tribunal again, in my view, is
unassailable. The Tribunal
in this instance applied the
prescriptive procedures as set out in the Tribunal Rules.
[68]
The Tribunal was bound by the Tribunal Rules unless it utilized
Tribunal Rule 28(1) and invoked the Rule 53(1)(b) procedure.
The
Tribunal Rules clearly does not make provision for the filing of the
record. The decision therefore could not be susceptible
to an
alteration by the Tribunal. There can be no doubt that the decision
remained definitive of the appellant’s rights to
gain access to
the record in terms of Rule 53(1)(b).
[69]
Moreover if I am to apply the overarching test – whether it is
in the interest of justice to consider the decision
on appeal, the
June 2022 order no doubt largely dealt with the appellants’
right in terms of Section 34 of the Constitution
to have a fair
hearing. Undoubtedly it is in the interest of justice to consider the
order on appeal.
[70]
Further in the analysis, the second issue then for determination is
that even if the order had final effect, was such
order suspended. In
this regard, it is necessary to determine the status of the notice of
appeal. The jurisdictional requirement
that has to be met for a valid
notice of appeal, is that it must be filed timeously. It is the
respondents’ argument that
since the notice of appeal was not
filed within the prescribed 20 days, as per Rule 49(2), the appeal
had lapsed and consequently
the order and judgment of June 2022 could
be executed.
[30]
[71]
Section 18(5) of the Superior Courts Act directs that a decision may
only become the subject of an appeal if such application
is lodged
timeously.
[72]
This principle was extrapolated upon and tested in
Myeni
[31]
.
The court therein expressed that the wording in Section 18(1)
signifies that in the absence of an application to appeal, the
judgment and order are not suspended and are deemed final. The fact
that the noting of an appeal suspends the execution of a judgment
appealed against logically means that in the absence of such an
appeal, the judgment is not suspended and is in fact deemed
executable
and thus final.
[73]
In
Myeni
at paragraph [19] the court expressed:
“…
in
light of the belated application now filed by the appellant, the
principal judgment’s order continues to remain in operation
for
the mere fact that the service of an application to condone the late
filing of the petition to the SCA does not suspend the
operation and
execution of any order.
To
conclude otherwise would give rise to an untenable situation in law
where, after an order has been operational for a number of
months, a
party could simply bring a condonation application which would result
in such an order would suddenly being suspended.
Such
a situation would clearly give rise to far reaching consequences that
this court cannot condone.
Consequently
where an application for leave to appeal is filed out of time, all
that is before the Supreme Court of Appeal is a
condonation
application.”
[74]
The court in
Panayiotou
[32]
held:
“
[12]
It has been argued that S 18(5) is prescriptive and that the test
emphasizes that the application for leave to
appeal be lodged with
the registrar in terms of the rules. Accordingly, it is argued,
until, (and only if) condonation is granted
can the petition be
lodged. All that is before the Supreme Court of Appeal at present is
an application for condonation, whose
fate is uncertain …”
[75]
Consequently from the aforesaid analysis, I find that the Tribunal
did not err in proceeding with the main application.
It was entitled
to execute the June 2022 order as the notice of appeal was not filed
timeously. In the premises, the second appeal
is dismissed.
[76]
The appellant was at liberty to file an application for the
suspension of the June 2022 order to this court (since it
had an
automatic right to appeal to this court). If such application for the
suspension of the order was successful, the appellant
would not have
found itself in this unenviable position. It is evident that it had
not availed this remedy to its benefit.
[77]
As things stand, the horse has bolted. The Tribunal had already
disposed of the main review application resulting in
an adverse order
against the appellant. The appellant’s version was not before
the Tribunal at the time. The September 2023
judgment encapsulates
the Tribunal’s findings in the main matter. On my
understanding, such judgment and order has not been
appealed as yet.
[78]
In the premises, therefore, the second appeal cannot succeed. The
June 2022 order could have been executed as there was
no order
suspending same.
[79]
Similarly, as in the first appeal, there is no reason why the costs
should not follow the result. The appellant should
be ordered to pay
the costs of this second appeal as well.
H
KOOVERJIE
JUDGE
OF THE HIGH COURT
GAUTENG DIVISION,
PRETORIA
I agree,
J
MOGOTSI
ACTING
JUDGE OF THE HIGH COURT
GAUTENG DIVISION,
PRETORIA
I agree,
I
COX
ACTING
JUDGE OF THE HIGH COURT
GAUTENG DIVISION,
PRETORIA
Appearances
:
Counsel
for the
applicant
:
Adv I Hlalethoa
Instructed
by:
Diale Mogashoa Attorneys
Counsel
for the
Respondent
Adv
AM Breitenbach SC
Adv GSS Khoza
Instructed
by:
The State Attorney (Pretoria)
Date
heard:
15 May 2024
Date
of Judgment:
10 June
2024
[1]
Trencon
Construction (Pty) Ltd v Industrial Development Corporation fo South
Africa Ltd and Another
2015 (5) SA 245
(CC) at paragraphs 83-89
[2]
the
appellant alleges that thee notice of appeal was filed on 2 November
2022
[3]
Caledon
River Properties (Pty) Ltd t/a Magwa Construction and Another vs
Special Investigation Unit and Another (GP/17/2020) [2022]
ZAST 20
(8 September 2022) before the Special Tribunal
[4]
The
Tribunal invoked Rule 49 of the Uniform Rules of Court in terms of
Tribunal Rule 28
[5]
United
Plant Hire (Pty) Ltd vs Hills
1976 1 SA 717
A at 720 E-G
[6]
Van
Wyk vs Unitas Hospital
2008 (2) SA 427
(CC) at 477 A-B
[7]
Meintjies
vs HD Combrink (Edms) Bpk 1961 (a) SA 262 A at 265 A-C
[8]
Rule
53(1)(b) provides:
“
1.
Save where any law otherwise provides, all proceedings to bring
under review the decision or proceedings of any inferior court
and
any tribunal, or the officer performing judicial, quasi-judicial
administrative functions shall be by way of notice of motion
directed and delivered by the party seeking to review such decision
or proceedings to the magistrate, presiding officer, or chairman
of
the court, tribunal or boardroom officer, as the case may be, and to
all other parties affected.
(b)Calling
upon the magistrate, the presiding officer, chairman or officer, as
the case may be, to dispatch, within 15 days after
the receipt of
the notice of motion, to the registrar, the record of such
proceedings so to be corrected or set aside, together
with such
reasons as is by law required or desired to give or made and to
notify the applicant that he has done so.”
[9]
Section
9(1)(a) stipulates:
“
Subject
to this Act and the Regulations, the Tribunal President may make
rules to regulate the conduct of proceedings of such
Special
Tribunal, including the process by which proceedings are brought
before the Special Tribunal and the form and content
of that
process.”
[10]
my
emphasis
[11]
Helen
Suzman Foundation vs Judicial Service Commission 2018 (4) SA 1 (CC)
[12]
Bo-Kaap
Civic and Rate Payers Association vs City of Cape Town 2020 [2] All
SA 330 (SCA)
[13]
The
underlining was to emphasize the salient points in the judgment
[14]
See
also Afrisun Mpumalanga (Pty) Ltd v Kunene N.O.
1999 (2) SA 599
TPD
[15]
STT
Sales (Pty) Ltd v Fourie
2010 (6) SA 272
(GSJ) at paragraph [16] and
[17]
[16]
Special
Investigation Unit vs Chauke Quantity Surveyors and Others (Case No.
45529/2016) GNP unreported
[17]
Mamadi
and Another vs Premier of Limpopo Province 2024 (1) SA 1 (CC)
[18]
Jockey
Club of South Africa v Forbes
[1992] ZASCA 237
;
1993 (1) SA 649
A and 660 I to 661 B,
the HSF matter and the DA matter
DARD
vs Chairperson of the DAC of Stellenbosch University
[2021] 2 All SA
141
(WCC) at paragraph 21
[19]
Jockey
Club matter
[20]
[ZASCA]
[2024] 2 All SA 342
(SCA) (14 March 2024 and my emphasis
[21]
South
African Football Association vs Stanton Woodrush (Pty) Ltd t/a Stan
Smidt and Sons
2003 (3) SA 313
(SCA) at paragraph [5]
[22]
Minister
of Home Affairs and Another vs Public Protector of the Republic of
South Africa
2018 (3) SA 380
(SCA)
[2018] 2 All SA 311
at paragraph
[38]
[23]
Mamadi
at paragraph [38]
[24]
Democratic
Alliance and Others vs Acting National Director of Public
Prosecutions and Others
2012 (3) SA 486
(SCA) at paragraph [36]
[25]
HSF
matter at 11B
[26]
Premier
van die Provinsie van Mpumalanga vs Stadsraad van Groblersdal
1998
(2) SA 1136
(SCA) at 1141 D-F
[27]
John
Walker Pools vs Consolidated Aone Trade and Invest 6 (Pty) Ltd (in
liquidation) and Another
2018 (4) SA 433
(SCA) at 436 G-H
[28]
United
Democratic Movement and Another vs Lebashe Investment Group (Pty)
Ltd and Others [2022] ZACC 34.1
[29]
the
underlining is premised on my emphasis
[30]
The
Tribunal invoke Rule 49 of the Uniform Rules of Court
[31]
Myeni
vs Organisation Undoing Tax Abuse NPC & Another [2021] ZSGPPHC,
GPPHC (15 February 2021) paragraphs 19, 25 & 26
[32]
Panayiotou
vs Shoprite Checkers (Pty) Ltd and Others
2016 (3) SA 110
(GJ) at
paragraph 9
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